The shockwaves felt by the domestic gem and jewellery industry in the aftermath of last year’s demonetization seem to be receding. A large section of industry players are optimistic of recording strong sales on the auspicious occasion of Akshaya Tritiya, which will be celebrated across the country this on April, 28.
The festival is traditionally believed to be an auspicious time to buy gold and precious jewellery, especially among the country’s Hindu and Jain population who are known to buy the yellow metal and organize weddings and other festivities on this day.
A strong rupee--sign of revival of the economy, and the impending wedding season are being touted as key factors behind the industry’s optimistic outlook. The industry suffered a major beating post demonetization, when domestic sales dropped by as much as 60-70 percent in major cities, causing serious ripples in global markets since India is a major player.
No Dearth of Offers:
Keen to take advantage of the improved liquidity situation and festival sentiments of buyers, domestic players left no stone unturned in their efforts to maximize sales this Akshaya Tritiya.
While some gold retailers lured customers with new collections, attractive discounts, free-gifts and cash-back offers, others gave discounts on making charges and free gold coins with large purchases.
• On the occasion of Akshaya Tritiya, Reliance Jewels offered up to 30 percent off on diamond value of diamond jewellery and up to 50 percent off on making charges of plain gold jewellery between the 10th and 30th of April 2017. The offer was available at all Reliance Jewels showrooms across the country.
• CaratLane, India’s leading omni-channel jeweller launched a new range of 22-kt gold jewellery that has been crafted by reviving traditional techniques and patterns into contemporary designs.
• Fine jewellery label Ghanasingh Be True announced an exchange on old gold jewellery for diamond studded pieces from their latest collection; along with a special offer of 'No Making Charges' on bangles and rings, on the auspicious occasion. The offers were valid till April 30.
• Noted jewellery designer Sangeeta Boochra launched a new collection that includes bold bracelets, jhumkas, chandbalis, neck pieces and more – all artfully designed to perfection and exclusively handcrafted in 18-22 kt gold with elaborate designs.
• Style Quotient Jewellery Pvt. Ltd, the exclusive global licensee of Being Human Jewellery launched a wearable coin shaped ‘Good Luck’ pendant set in 18k gold and natural diamonds with a price tag of INR 22,950.
• Bluestone.com unveiled two new collections ahead of Akshaya Tritiya called the ‘Nava Collection ‘(INR 17,000-1,09,000) and the ‘B-Iconic Collection’ (INR 8,800-1,01,000).
Other Investment Avenues:
For those not inclined towards buying jewellery this festive season, Gold ETFs are available for buying and trade on the exchanges. Then there is the option of investing in gold bars or coins.
Risk-averse investors can also look at parking their funds in the recently-launched series of Government of India Sovereign Gold Bonds, which carry a fixed rate of interest of 2.5 percent per annum, with pay-outs twice a year.
Why Gold is a Safe Bet:
Gold price has recorded a downward trend in the recent past, from its five-month high. A strong rupee has played its role in the softening of domestic gold prices.
From a global perspective, gold prices are expected to maintain their present course riding the back of several strategic concerns including a weakened USD, spike in global inflation levels and forthcoming elections in Europe, among others.
Consequently, global markets have also seen net inflows of the precious metal with approx. 80 percent of the holdings parked in long gold. Central banks of several European countries and Russia have also been augmenting their gold reserves, while India is placed comfortably with its gold reserves pegged at a healthy 557 tonnes, approximately.
Traditionally, gold has always been looked at as a safe haven for investment, a proven safeguard during times of risk and as a hedge against inflation.
Globally too, there have been several instances when this precious metal has exhibited its strong investment attributes like during the easing of the US monetary policy, the Greek debt crisis and more recently the ongoing tensions with North Korea and Syria.
While comprehensive figures for Akshaya Tritiya are still not in, according to industry sources, the festive buying got off to a good start with a large number of pre-orders placed by buyers for delivery of jewellery on Akshaya Tritiya in cities like Surat and Mumbai.
They further add that there is a noticeable shift in the consumers' mentality in that they are no longer looking at jewellery purely from an investment perspective but also as a luxury purchase.
Latest trends also indicate a change in jewellery buying patterns with buyers opting more for light-weight diamond and silver jewellery, as opposed to heavier options in gold.
Substantial increase in sales this year on Akshay Tritiya could signal the end of turbulent times faced by the industry over the last couple of years.
|- By GemAtlas Team|